Audit Reports

West Bengal

Overview

This Report contains eight chapters, containing observations of audit on accounting procedures, financial management, revenue receipts, establishment, procurement, implementation of schemes and conclusion and recommendations of Audit. A synopsis of the Audit findings is presented in this overview. During 2003-04 to 2005-06, the shortfall in revenue expenditure in 18 ULBs ranged between 20 and 78 per cent affecting the quality of civic services to the people.

The expenditure under capital section for creation of assets had decreased by four per cent from Rs 59.10 crore in 2003-04 to Rs 56.83 crore in 2004-05.Although increased by 48 per cent to Rs 84.06 crore during 2005-06, there was a shortfall of 45 per cent in utilisation vis-a-vis the budget provisions. The decreasing trend of mobilisation of capital fund and under utilisation narrowed the scope of augmentation / extension of services to the tax payers.The excess expenditure of Rs.19.17 crore incurred by 10 ULBs during 2003-04 to 2005-06 has not been regularized.The expenditure of Rs 221.49 crore incurred during 2001-02 and 2005-06 by 22 ULBs could not be vouchsafed due to non preparation of annual financial statements for periods ranging from one year to eight years.Due to non-preparation of Balance Sheets by 65 ULBs, the financial status of these local bodies could not be verified.

The Balance Sheet of KMC for the year ending 31 March 2005 revealed that several items under liability were understated to the extent of Rs.404.49 crore and assets were overstated by Rs.105.59 and excess of income over expenditure was overstated by Rs.73.13 crore.Non reconciliation of the cash balance of KMC as on 31 March 2005 has resulted in overstatement of assets by Rs.31.19 crore, underlining the need for resolution of the issue.Fifty four per cent of available resources could not be utilised by 55 ULBs in 2004-05 mainly due to non execution/ delay in implementation of schemes.Ten ULBs diverted Rs.2.67 crore sanctioned for specific purposes during the years 2001-02 to 2005-06 depriving the beneficiaries of the intended benefits.Twelve ULBs did not repay loan of Rs.15.15 crore and accumulated huge liability of Rs.38.95 crore. The increasing liabilities adversely impact the financial stability of the ULBs and in turn constricts their capacity to raise market loans and develop infrastructural facilities for the rate payers. All primary schools under the municipalities stood transferred to the District Primary School Council (DPSC) together with their lands, buildings and other properties. All teachers and other staff shall be deemed to be employed by DPSC with effect from 15 April 1992.Despite the above arrangement for taking over liabilities of primary schools, nine municipalities incurred a total expenditure of Rs 10.58 crore towards salary of employees and maintenance of primary schools during the period 1992-2006.

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• Preface
• Overview
• Chapter 1 - Introduction
• "Chapter 2 - Accounting Procedures and Financial Management"
• Chapter 3 - Revenue Receipts
• Chapter 4 - Establishment
• Chapter 5 - Material Management and Execution of Works
• Chapter 6 - Implementation of Schemes
• Chapter 7 - Other Issues
• Chapter 8 - Conclusion and Recommendations
• Appendices